[TiểuHồLy]

I don't know if you have done a feasibility study of renting property before jump in but I know people around me don't. All they see is if the mortgage is $1k and renting is $1500, then there is $500 in their pocket.

For me the only way I would is pay off the rental property with cash, no mortgage. If you use Mortgage Calculator for 15 or 30 years,
you would end up pay more than you bought. So in short term, you get extra monthly income while you lose more on long term.

This may be benefit for people with low income so they can maximize the tax deduction. Don't forget if yours adjusted gross income is over $150k, you won't get any depreciation.
 
I believe you have 45 days to invest another property after selling and need to close the deal before 180 days. Otherwise, you would have to pay tax on capital gain. And the new property has to be equal or more. For me, 10 years is enough. I don't want to end up another 10 years of stress.

There are more rules and regulations than you can think of. It's complicate. All they want to do is sell, pay tax, and get over it. If you really want to go every detail how to maximize the tax and capital gain, you would end up to read more than 100 subjects related to the rental because 1 thing is lead to another. 

When you reach 55, search for Property Tax Base Transfer if you plan to buy a new house. For example, you sell the old house for $500k, the new house house has to be $500k or less, then you can transfer the old house's property tax to the new one. Let say my old house was $100k with property tax $1700. At 1.12% tax rate, $500k would end up around $5600 tax. Fill out the Property Tax Base Transfer that allows me continue paying $1700 instead of $5600 property tax. I believe it's available in every state with different rules. And only apply 1 time in your life.

Everyone has different income, so all of these may work/not work at all. You have to figure out the best benefit by yourself. And nothing is easy to earn money. :)

I have invested twice in the real estate world. Both had a mortgage loan on them. First, I bought a house in Sacramento and individually rented out the rooms. Nearly 14 months later, I was forced to sell it since my renters caused trouble for the HOA and the neighborhood. I profited well from this trade by claiming it as my primary residence. Second, I bought another house in Arkansas and rented it to my relatives because of their unsatisfactory tenant screening results. The story ends with discontented, as I mentioned in a previous post.

I heard my adopted sister claim she is a millionaire as she keeps trading rental properties repeatedly without paying a penny in taxes. Hence, I illustrate, and the skeptical question arises.  

It's not easy to make money, indeed. The PTBT applies to the primary house only, right? I discovered that my state doesn't impose real estate transfer taxes on buyers or sellers according to Proposition 100 (Protect Our Homes Act), which was enacted in 2009. Ironically, I couldn't have any depreciation or prevail benefits from tax deductions. 

Hey, bro! Any knowledge of the living trust field? Mind guiding me again?